EDR FUND EUROPE SYNERGY (A EUR) / (B EUR)

Transcription

1 SICAV GENERAL INFORMATION Investment objective The sub-fund aims to generate consistent outperformance over a complete business cycle through a selection of stocks potentially targeted in takeover deals, which are favoured by periods of growth, and restructuring stocks, which are at an advantage in periods of market decline. The added value lies in the fund manager s know-how in picking European stocks that are likely to be targeted in major events. Monthly comment January was dominated by central bank policy and oil, with the price of the latter penalised by fears of a slowdown in global growth, in the wake of China s deceleration. The downward trend in December has accordingly run on into January, but with a recovery at the month end thanks to the ECB (promising to reconsider current monetary policy) and the Bank of Japan (rescuing the year s final trading day by launching a negative deposit rate). However, this did not prevent a sharp drop of over -6% on the indices. The most cyclical companies, linked to commodities and energy sectors, have been hit hardest by these concerns. The banking sector has been particularly impacted by existing concerns over the level of bad debt in banking. Despite good numbers from the European market in December, the automobile sector has been hit by the CO2 emissions scandal (with Renault s sharp drop in sales pulling its competitors downward). Publication of a number of good earnings reports for the last quarter has nevertheless brightened the picture, especially in the luxury goods sector. Here seasonal reports show Europe and the United States holding up well, and China not worsening (at Richemont, Burberry, Tod's or Rémy Cointreau). While in capital goods margins at Philips and Siemens provided a positive surprise. M&A started the year at a slower pace than 2015, but consolidation in the European telecoms sector is still making headlines with a merger between Orange and Bouygues Télécom expected, together with Iliad s new aspirations on the UK market. During the month we initiated a position on Smith & Nephew. The group has improved its fundamentals and the company s status as a target has been bolstered in an industry that is actively consolidating. Potential buyers include the US group Stryker, and also Johnson & Johnson. We have exited UBS since most of the decisions related to the group's restructuring have already been announced. The environment for the banking, corporate finance and investment sectors has become less certain, both in terms of fundamentals and the regulatory framework, prompting us to lower our valuation target. PERFORMANC Benchmark () : MSCI Europe (NR) (EUR) Market index (NR index) : MSCI Europe (NR) (EUR) : Former benchmark expressed in price index chained with official benchmark expressed net dividend reinvested - NR index: Market index corresponding to the benchmark, dividend reinvested. Performance chart (from 05/12/06 to 29/01/16) Cumulative performances (Net of fees) (Rolling periods) /12/ /05/ /10/2007 PORTFOLIO 14/04/ /09/ /03/ /08/ /02/ /07/ /12/ /06/ /11/ /04/ /10/ /03/ /09/ /02/ /08/ /01/ /07/ /12/ month 3 months YTD 1 year 2 years 3 years 5 years 10 years Since Annualized inception since inception -5,61-7,52-5,61-3,94 9,63 24,41 33,83-42,93 3,98-6,22-8,80-6,22-5,35 10,38 26,38 29,11-1,37 0,15 NR -6,22-8,80-6,22-5,35 10,38 26,38 37,72-22,28 2,22 Statistics (Rolling periods) Volatility Tracking error Sharpe ratio 52 weeks 3 years 52 weeks 3 years 52 weeks 3 years 18,95 12,46 3,51 3,59-0,20 0,61 18,82 13, ,28 0,61 Sector breakdown Fund % of Net Assets 24,4 19,9 10,7 9,9 8,7 6,3 5,6 5,0 2,2 7,1 0,2 Industrials Consumer Discretionary Information Technology Telecommunication Services Consumer Staples Materials Healthcare Utilities Financials Cash Others Country breakdown % of Net Assets Fund United Kingdom 32,6 France Germany 11,5 Netherlands Finland Switzerland 5,7 Sweden Cash 20,2 10,4 7,2 3,5 2,0 7,1 Top holdings 5 Main holdings (Number of holdings : 31) Sector % of Net Assets BOUYGU SA Industrials 5,4 NOKIA OYJ Information Technology 5,2 UNED UTILI GROUP PL Utilities 5,0 TELECOM ALIA SPA Telecommunication Services 5,0 KONINKLIJKE KPN NV Total Telecommunication Services 4,9 25,5 Financial data (weighted averages) PER 2016 PER 2017 EPS var. PCF 2016 PBV 2016 Yield / ,7 19,3 12,6 13,8 3,1 3,0 Carbon Footprint (a) Fund Carbon Footprint (tons eq. CO2/M invested) 24/11/15 122,40 24/11/15 234,20 (FRANCE) 47, rue du FaubourgSaint-Honoré Paris Cedex 08. Société Anonyme. AMF Agreement Number R.C.S. PARIS 1/5

2 SICAV PERFORMANCE TRACK RECORD (%) Net performance Jan. Feb. March April May June July Aug. Sept. Oct. Nov. Dec. Annual 3,09 3,94 1,24 0,84-5,56 3,49 3,78 1,56 0,27-0,37 3,38 0,92 17,45 3,69 3,77-0,45-2,34-6,90 4,89 4,11 1,72 0,73 0,62 2,03 1,35 13,38 1,56 1,32 1,85 0,74 4,40-4,80 4,89-0,34 3,19 2,96-1,52 1,57 16,58 2,80 0,96 1,60 1,62 1,92-5,11 5,10-0,58 4,41 3,84 1,03 1,02 19,82-1,14 3,91-1,90 1,47 2,19 0,35-2,12 1,03-0,84-1,78 4,31 0,09 5,44-1,77 4,77-0,81 1,88 2,52-0,44-1,54 2,01 0,36-1,83 3,17-1,41 6,84 7,00 4,95 1,96-0,51 2,94-4,62 3,03-8,54-2,32 7,98 2,62-4,53 8,90 7,23 6,92 1,66 0,01 1,42-4,63 4,00-8,42-4,31 8,29 2,68-5,28 8,22-5,61-6,22 MAIN MOVEMENTS OF THE MONTH New positions Strengthened positions Sold Reduced SMH & NEPHEW PLC No position strengthened UBS GROUP AG ATOS WARTSILA OYJ SAGE GROUP PLC/THE KONINKLIJKE PHILIPS ELECT ADIDAS AG PERFORMANCE ANALYSIS Top 5 positive performers (from 31/12/15 to 29/01/16) Av. weight(%) Contribution(%) ADIDAS AG 4,01 0,21 KONINKLIJKE PHILIPS ELECT 2,91 0,11 KONINKLIJKE KPN NV 4,62 0,10 VIVENDI SA 3,64 0,05 REMY COINTREAU SA 2,42 0,02 Top 5 negative performers (from 31/12/15 to 29/01/16) Av. weight (%) Contribution (%) TELECOM ALIA SPA 5,14-0,70 METRO AG 4,75-0,61 INTERCONTINENTAL HOTELS G 3,18-0,57 STANDARD CHARTERED PLC 2,31-0,49 AT INVENTS NV 1,63-0,44 STATISTICS & PERFORMANCE ANALYSIS Statistics (Rolling periods) 52 weeks 3 years 5 years (week. perf.) (month. perf.) (month. perf.) Volatility 18,95 12,46 12,28 Tracking error 3,51 3,59 3,74 Information ratio 0,40-0,16 0,20 Sharpe ratio -0,20 0,61 0,47 Alpha 0,03 0,02 0,11 Beta 0,99 0,90 0,88 R2 0,97 0,93 0,93 Correlation 0,98 0,96 0,96 Performance Analysis Since inception (month. perf.) % of positive performances 56,36 Minimum yield -23,62 Maximum yield 17,10 Payback period 369 day(s) FUND CHARACTERISTICS Share characteristics AE Share BE Share Net asset value (EUR) : 142,93 125,87 Share issue date : 05/12/ /07/2011 ISIN code : Bloomberg code : EDRAE LX EDRBE LX Lipper code : Telekurs code : Distribution : Accumulation Distribution Latest coupon : - - Subscribers Type : Individual investors Fund Managers Philippe LECOQ, Olivier HUET Fund characteristics Legal status Fund inception date : 05/12/2006 Fund domicile : Luxembourg Administrative Information Management Company : Edmond de Rothschild Asset Management (Luxembourg) Valuation : Daily Administration : Edmond de Rothschild Decimalised : 3 decimals Asset Management (Luxembourg) Custodian : Edmond de Rothschild Initial minimum subscription : 1 Share (1) (Europe) Subscription & redemption conditions : Daily before am C.E.T. on day's net asset value (1) Management Subscription/Redemption fees Actual management fees : 1,7% Subscription fees Max./Real : 4,5% / 4,5% Performance fees : yes (1) Redemption fees Max./Real : no / no (1) In the interests of clarity and transparency, please familiarise yourself with the specific features of this product as detailed in the prospectus. (FRANCE) 47, rue du FaubourgSaint-Honoré Paris Cedex 08. Société Anonyme. AMF Agreement Number R.C.S. PARIS 2/5

3 SICAV CONTACTS Your contacts Edmond de Rothschild Asset Management (France) UK : edram@lcfr.co.uk Germany / Austria : info@lcfr.de Benelux : info@lcfr.be Asia : info@lcfr.hk Edmond de Rothschild Paris edram_paris@lcfr.fr Institutional Sales clientele_institutionnelle@lcfr.fr Employee Savings Schemes epargne_entreprises@lcfr.fr Banks and Asset Managers banques_societesdegestion@lcfr.fr Latin America : info@lcfr.cl Spain : info@lcfr.es Switzerland : info@lcfr.ch : info@lcfr.it Platforms and IFAs plateformes_conseillersindep@lcfr.fr (FRANCE) 47, rue du FaubourgSaint-Honoré Paris Cedex 08. Société Anonyme. AMF Agreement Number R.C.S. PARIS 3/5

4 SICAV EDR FUND EUROPE SYNERGY (A EUR) as of 31/12/2015 in the category Europe Large-Cap Blend Equity :QQQ PRODUCT RISKS AND DISCLAIMERS All of the data in this document relating to the Fund is provided by the valuation agent, except for the portfolio and the resulting analyses which are provided by Edmond de Rothschild Asset Management. Data distributors (RIM and Bloomberg) are the main sources for the indices and the characteristics of the stocks held in the portfolio. MAIN INVENT RISKS : - Equity risk - Capital risk - Risks associated with small and mid caps - Risk linked to financial and counterparty contracts - Currency risk - Discretionary management risk - Risk linked to the currency of units denominated in currencies other than that of the Fund - Interest rate risk - Credit risk A description and more information about the risks associated with this UCI are provided in the UCI s prospectus/partial prospectus. The regulations, prospectus/partial prospectus and Key Investor Information Document are available free of charge on request from Edmond de Rothschild Asset Management (France) and/or from the following representatives and correspondents: Belgium CACEIS Belgium SA avenue du Port 86 c, boîte 320,Bruxelles,B-1000,Belgium Switzerland(Paying agent) Edmond de Rothschild (Suisse) S.A. 18, rue de Hesse,Genève,1204,Switzerland Switzerland(Representative) Edmond de Rothschild Asset Management (Suisse) S.A. 8, rue de l'arquebuse,genève,1204,switzerland Germany MARCARD, STEIN & Co GmbH & Co KG Ballindamm 36,Hamburg,20095,Germany Spain ALLFUNDS BANK SA Paseo de la Castellana 9,Madrid,E-28046,Spain France CACEIS Bank France 1-3 place Valhubert,Paris,75013,France United Kingdom Société Générale Securities Services Custody London Exchange House - 12 Primrose Street,London,EC2A 2EG,United Kingdom Société Générale Securities Services S.p.A. Via Benigno Crepsi 19A,Milan,MAC2, State Street Bank GmbH, Succursale Italia Via Ferrante Aporti 10,Milan, BNP Paribas Securities Services, Succursale di Milano Via Ansperto 5,Milan, Luxembourg Edmond de Rothschild Asset Management (Luxembourg) 20, boulevard Emmanuel Servais,Luxembourg,L-2535,Luxembourg Sweden B Investment Management AB ST 6,Stockholm,S ,Sweden and/or on its website ( in order to allow the investor to analyse their risk and to form their own opinion independently of any entity of the Edmond de Rothschild Group, by obtaining as much specialist advice on such matters as is necessary in order to ensure that this investment is appropriate for their financial position, experience and investment objectives. The data, comments and analyses given in this presentation reflect the views of Edmond de Rothschild Asset Management (France) on the markets and their trends, regulation and taxation, taking into account its expertise, economic analyses and the information held at the present time. They do not, however, constitute any form of commitment or guarantee on the part of Edmond de Rothschild Asset Management (France).The figures quoted relate to previous years. Past performance and ratings are not indicators of future performance or ratings. Performance data does not take into account the fees and charges received when issuing and redeeming units, nor the tax charged by the client s country of residence. The Fund s investment policy does not anticipate any correlation between the Fund and the index indicated. Consequently, the UCI s performance may differ from that of the index. Morningstar ratings are not market ratings and should not be considered as recommendations to buy, sell or hold units or shares of the above-mentioned UCI. Rating - Source Morningstar, Inc. All rights reserved. If the figures expressed in this document are in a different currency than that of the Member State in which the client resides, the gains accruing to the client may increase or decrease in line with exchange rate fluctuations. If a specific tax treatment is applied to the product, this will depend on the individual circumstances of the client and may be subject to change in the future. This information does not constitute an invitation to subscribe to units in the Fund and does not replace its prospectus/partial prospectus. Country-specific regulations regarding the way a UCI is marketed may vary between countries. The UCI may be offered in a jurisdiction other than the countries of registration, specifically under a private placement regime, if the applicable law of this other jurisdiction allows it. If you are in any doubt over the marketing possibilities for this UCI, please consult your usual financial advisor. UCIs may not be offered to a person if it is prohibited by the law of their country of origin or of any other country which may apply to them or to the product. Residents of the United States: The Fund and its units are not registered under the Securities Act of 1933 or any other United States regulation. They may not be offered or sold for the benefit or on behalf of a U.S. Person as defined by Regulation S. Hong Kong : This document is intended only for professional investors as defined under the relevant laws of Hong Kong and is not intended for the public in Hong Kong. The contents of this document have not been reviewed by any regulatory authority in Hong Kong. No action has been taken in Hong Kong to permit the distribution of this document. In accordance with current local regulations, the UCI, or the class of the UCI, have received marketing authorisation from specific institutional investors, or more broadly from qualified professionals or investors in the following country(ies):singapore The Fund s related costs are disclosed in the prospectus/partial prospectus or investors brochure; investors can also access related charges information at the FundClear website provided by the SFB. Fund dividend distribution does not represent fund returns, and past dividends do not guarantee future dividend payment. The value of the units of the fund or the income from them may rise as well as fall. MANULIFE AST MANAGEMENT (TAIWAN) LTD approved number: A0027,address: 9F, NO. 89 SUNGREN ROAD, 11073, TAIPEI, TAIWAN Telephone no.: RISK SCALE Risk and reward profile Lower risk, potentially lower return Higher risk, potentially higher return This rating system is based on average fluctuations in the fund's net asset value over the past five years, i.e. the scale of changes in the index securities, both up and down. If the net asset value is less than 5 years old, the rating is determined by other regulatory calculation methods. Historic data such as those used to calculate the synthetic indicator may not be a reliable indication of the future risk profile. The current category is neither a guarantee nor an objective. Category 1 does not signify a risk free investment. This fund is rated in category 6, reflecting that it can be up to 110% exposed to equities markets, which presents a high risk/reward profile. HISTORICAL DATA Benchmark modification history From 02/01/2013 From 05/12/2006 MSCI Europe (NR) (EUR) MSCI Europe (EUR) (FRANCE) 47, rue du FaubourgSaint-Honoré Paris Cedex 08. Société Anonyme. AMF Agreement Number R.C.S. PARIS 4/5

5 SICAV METHODOLOGY (a) Carbon Footprint : Our carbon measures rely on the data supplied by the companies and updated annually (annual report, Carbon Disclosure Project) or estimated by third-party data providers (Bloomberg). We then produce several indicators calculated as follows: Carbon Footprint (in tonnes of CO2 equivalent per million euros invested): It measures the volume of greenhouse gas (GHG) emissions for which the portfolio is responsible in proportion to its capital share. If an investor holds 1% of a company s market capitalisation, they are responsible for 1% of that company s emissions (in tonnes of CO2 equivalent). Company Share = (price*number of shares held) / Market capitalisation Absolute Carbon Footprint = (Company Share(i)*Company Emissions (i)) Carbon Footprint = Absolute Carbon Footprint / Fund Net Assets Carbon emissions include Scope 1 + Scope 2 Scope 1 emissions: direct emissions of greenhouse gases (fuels, refrigerant fluids, fuel for vehicles owned) Scope 2 emissions: indirect emissions (electricity, steam purchase) (FRANCE) 47, rue du FaubourgSaint-Honoré Paris Cedex 08. Société Anonyme. AMF Agreement Number R.C.S. PARIS 5/5